- Goldman Sachs' venture into consumer lending was highlighted by big partnerships with Apple and General Motors, with notable successes and challenges.
- Difficulty in managing the newly developed lending sector and the associated financial losses have purportedly lead to the decision to consider an exit strategy.
- Future plans suggest a return towards Goldman's original portfolio management structure, with ongoing discussions with big players such as American Express.
Goldman Sachs, a long-standing titan of Wall Street, took a detour down Main Street with its strategic gambit into consumer lending, featuring high-profile partnerships with major brands like Apple and General Motors. However, this new gold-paved road may be short-lived, as insider reports suggest the banking powerhouse is considering an exit from consumer lending, fueled by financial losses and regulatory scrutiny.
Arguably, Goldman Sachs transitioned from being purely an institutional Wall Street firm into a consumer bank with the launch of its own digital bank, Marcus. Named after the Goldman Sachs founder Marcus Goldman, this online platform offered personal loans and savings accounts to average consumers. Major milestones in this journey included a noteworthy partnership with Apple on the Apple Card credit product and with General Motors on co-branded credit cards. These ventures seemed to indicate a long-term commitment for Goldman Sachs in consumer banking.
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